The United Kingdom (UK) has announced new trade reforms aimed at simplifying access to the UK market and strengthening economic ties with developing countries.
The announcement follows engagement with UK businesses, international partners, major importers and trade associations.
African exporters and entrepreneurs are expected to benefit from the reforms which aim to boost African exports to the UK and support regional integration under the African Continental Free Trade Area (AfCFTA) – the African Union estimates this could generate up to US$3.4trillion in combined GDP.
Last year, goods worth more than £3.2billion imported into the UK from African countries benefitted from preferences granted under the UK’s development trading arrangements.
Upgrades under the reforms include simplified rules of origin, which will enable all Developing Countries Trading Scheme (DCTS) countries – including those further along the value chain, such as Nigeria – to source inputs from across the African continent while maintaining tariff-free access to the UK market.
In a statement announcing the development, UK Minister for Development Jenny Chapman said: “The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor. These new rules will make it easier for developing countries to trade more closely with the UK. This is good for their economies and for UK consumers and businesses”.
UK Minister for Trade Policy Douglas Alexander added: “No country has ever lifted itself out of poverty without trading with its neighbours. Over recent decades, trade has been an essential ingredient in lifting hundreds of millions of people out of poverty around the globe”.
Credit: msnonline